Avner Oil - Annual Report 2011 - Delek Energy Systems

All English versions / translation are given only for the convenience of the reader. The only official information is thatwhich is included in the formally Hebrew constitutional documents of the entity as well as in formally Hebrew publishedimmediate and financial reports of the entity and other reports made by the entity to the Israeli Securities Authority andthe Tel Aviv Stock Exchange. In the event of any conflict between translated constitutional documents and/or immediateand/ or financial and/ or business information given and the formally Hebrew published financial reports, the formallyHebrew published one shall prevail.2Chapter A – Description of the Corporation's Operations1. Description of the General Development of the Corporation's Business 11.1 Operations of the corporation and description of its business developmentAvner Oil Exploration – Limited Partnership ("the Partnership" or the "Limited Partnership") is a limitedpartnership involved in oil and gas exploration and production. The Partnership was incorporated inaccordance with the limited partnership agreement signed on August 6, 1991 (and subsequentlyamended) between Avner Oil and Gas Ltd. as the general partner of the first part and Avner TrustsLtd. as the second part, serving as limited partner and trustee. The Limited Partnership wasregistered on August 6, 1991 in accordance with the Partnerships Ordinance (New Version), 1975("the Partnerships Ordinance"). The ongoing management of the Partnership is carried out by thegeneral partner.In accordance with the prospectuses published by the Limited Partnership, between 1991 and 2003, thelimited partner in the Partnership issued partnership units to the public, which grant workinginterests in the rights of the limited partner in the Limited Partnership.Structure of the holdings in the Limited PartnershipLimited Partnership –Avner Trusts Ltd.General Partner –Avner Oil and Gas Ltd.The Limited Partnership23.00% 100% 43.44%100% 100%Yam Tethys Ltd.Avner Explorations(Tamar Finance)Ltd.Delek and Avner –Yam Tethys Ltd.Avner Explorations(Yam TethysFinance) Ltd.Avner Explorations(LeviathanFinance) Ltd.(A)Yam Tethys Ltd. is a company incorporated by the partners in the Yam Tethys project for thepurposes of receiving a license for the transmission of gas from the production platform tothe Ashdod shore, as required by the Natural Gas Sector Law, 2000 ("the Natural GasSector Law"). At the date of the report, Yam Tethys Ltd. has no other activities other than itsduties as holder of a construction and operation license for the gas pipeline, granted by theMinister of Energy and Water ("Minister of Energy") on April 29, 2002, and other activities1For definitions of some of professional terminology used in this section, see the definitions appendix at the end of thechapter.A-1